Hello again, Tim, and thank you for clarifying the situation for me.
Yes, it does sound as though fault is clear, so there would not typically be grounds to prevent the insurer from obtaining a judgment against you.
I would normally contact their attorneys and make a settlement offer. It will cost them something to obtain a judgment and collect on the judgment, so they may be willing to settle for somewhere in the neighborhood of $3,000.
If they do not immediately accept the offer and agree in writing to dismiss the suit, you will need to file an answer in the suit just so they do not obtain a default judgment against you.
If you allow them to obtain a default, it could include their attorney's fees and other costs if they have requested that relief.
So if they do not settle promptly, you may wish to retain an attorney to file the answer, just so you have more leverage to negotiate a settlement. Otherwise, you will lose your leverage since they will be entitled to a default judgment.
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